In this update, Tom Cloud reviewed his calls for the precious metals market last year and what he sees taking place in 2018. Tom discusses their price targets and the overall precious metals market. For example, Tom’s forecast for gold to go up 10% in 2017 actually turned out to be 13.5%. This was due to what he saw as the falling U.S. Dollar Index.
According to Tom, the gold price in the past tends to go up about 8% for every 1% decline in the value of the Dollar. The U.S. Dollar fell 3% in 2017, so that suggested a 24% increase in the value of gold. However, the gold price only went up 13.5% last year. So, Tom sees the gold price catching up this year and believes it will increase another 10-15%.
The reason Tom believes the gold price will increase in 2018 has to do with the overvalued Stock Market, the ongoing policy by the Chinese to back their Yuan by gold and the continued weakness of the U.S. Dollar. I most certainly agree with Tom on the U.S. Bubble Stock Market. Just a correction of 10-15% could cause a huge increase in retail and physical gold bar and coin demand.
Tom also discusses how some of his clients did very well by taking his advice on purchasing palladium at the beginning of 2017. Palladium was the big precious metals winner last year by rising 50% from $706 to $1,057. In addition, Tom explains some of the dynamics of the platinum and palladium market.
While I don’t pay too much attention to the short-term precious metals price movements as does Tom, he does provide this information to those investors (especially to his wealthy clients) who like to trade the metals. Regardless, I sponsor Tom Cloud on my site because he is one of the most honest and upfront precious metals dealers in the industry. Also, Tom has some of the lowest rates in the precious metals industry.
For those precious metals investors that WANT STORAGE, his service offers the lowest rate in the industry. He has told that when some precious metals investors, who are storing their metal with another company, found out about his low rates, they were literally shocked. Actually, some were quite upset how much they were overpaying.
I am not going to get into a debate on whether or not an individual should use a storage facility to store their metal. Some precious metals investors choose to store gold and silver because they have too much metal or they want to diversify their holdings in many areas.
Lastly, if you haven’t checked out our new PRECIOUS METALS INVESTING section or our new LOWEST COST PRECIOUS METALS STORAGE page, I highly recommend you do.
If you are new to this site, you may want to check out our PRECIOUS METALS WEBINAR. There is a lot of excellent material discussed during that webinar… for free.
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If gold rises by 10-15% this year it means that there will be no market crash and trend reversal. Again self proclaimed “pundits” or PMs peddlers are mistaken.
Alright Ed, you got to say your piece. WELL DONE. Good for you. It’s so easy to bash the precious metals dealers who are the few individuals on the planet who are trying to get people to protect some of their wealth while the Central & Commercial Banks print money and increase debt like drunken sailors.
While I don’t pay much attention to price targets, I respect Tom for being one of the most honest and upfront precious metals dealers. Unfortunately, there is a significant amount of fraud and highway robbery in the precious metals industry.
So, please continue to regurgitate that precious metals dealers are mere “PM PEDDLERS” while the BANKS are doing GOD’S WORK.
Excuse me for being blunt, but this sort of response gets old.
I am not against PMs or hedgeing, but numerous analysts talk about the coming armaggeddon and they defer it year after year. They discredited themselves with shemitah. One of them claims that one bank gathered 50% of the available phisical silver to corner the market. Is it plausible?
How is it not plausible?
Why are the metals futures markets the only one’s that don’t require full physical backing of the underlying asset?
Why does the Treasury department directly intervene in markets?
Why isn’t an audit of the Federal Reserve allowed?
Why isn’t an audit of Fort Knox allowed?
Why does the Federal Reserve take 5 years to return Germany’s gold?
And when it does, the first year severely violates the Federal Reserve’s own delivery schedule?
And when it does, the serial numbers on the bars are from new casts?
Why does J Edgar Hoover send a memo stating, “we must convince the American people that Oswald did it”?
Why does Donald Trump appoint Goldman Sachs alumni to every financial position?
Why does a country’s gold holdings get airlifted to America when we invade?
Why did Venezuela’s gold holdings get airlifted to Goldman Sachs in exchange for fiat currency and more debt?
Shall I continue?
I can go on and on…
Have I lost something ? Arguments maybe ?
It would be wise to buy some physical gold and silver every few months. The number of bits & bytes haunting us is staggering.
After last week’s rise in Au price, the question is, when does the monkey hammer return, and how much this time?
It would be interesting to graph the amounts of each definitive price pushdown, the amount expended, and impact, and the longevity to see if any trends can be observed. Again, this might appear to apply only to short-term traders, but I argue that some people are, by necessity, only quietly saving enough fiat to make the next purchase when and if the price gets monkey hammered.
As I vaguely recall, the last monkey hammer was to the tune of 4 billion, the one prior to that only 2 billion. Thus diminishing returns. At what point will the big whales give up trying to suppress gold?
“At what point will the big whales give up trying to suppress gold?”
Well when they do, the system rapidly will trend towards major recession or depression. Manipulating the G & S prices in a range is a critical part of keeping the system [fiat currency values, bonds, stock values, and a whole lot of aspects of the economy] in the precarious balance we now have.
“Alan Greenspan said in 1966 in ” Gold and Economic Freedom” that:
” The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.”
There you have it. TPTB have done a great job fleshing out Greenspan’s principle. They have by unlimited fiat kept the prices of the PMs down and under control. When will the PM prices rise? When the dollar is no longer the World reserve currency. OR when the EROI hits the fan. When will that be? Let me be blunt, NO ONE KNOWS. So if you want to live on hope and dreams, ONLY keep stacking and HOPE that the manipulation will end. I say stack AND invest in cryptos, they sure beat investing in PM stocks. THAT is the reason for the surge in crypto assets. comparing cryptos to physical metals is absurd. Compare them to PM stocks. Both are digital, at least you own the private keys (if you are smart ) with cryptos while the broker owns the stock in street name. It is not GREED that motivates those to own them but the desire to PROTECT one’s wealth from an ungodly state that is GREEDY. Remember this and you will understand cryptos, ” Quadrillions of fiat chasing Billions of Cryptos”
TPTB have erected a “Maginot Line” against the metals and as the French found out in WWII, it is a grave mistake to fight the last war with yesterdays technology.
Oil will be much more expensive than now, because the dollar, will loose value. and one oil companies are broke it will make a shortage and oil will go even higher…
EROI and your theory says it will go LOWER, i say HIGHER!!!
Yes, higher first (IMHO too) but when it goes too high the remainder of the real economy is gonna bust and crumble under severe price inflation. THAT will be the end game and what might follow is anyone’s guess; likely nothing pretty, to say the least.
oil might be the new gold
last comment should read “money”
Once producers will go “oil for gold only ” the paper (PM) ponzi will collapse in the blink of an eye. We’re not there yet, but the day is drawing nearer: Daily oil consumption/demand ~95 million barrels = ~ U$$ 6 billion; 6 billion in gold is roughly 142 metric tons of gold at current prices ($1335 per ounce). THAT would mean a yearly demand of 51 800 mt or more than 25% of all gold EVER minded. Russia and China seem to follow that path; if so a drastic price reset of gold is / will be inevitable. Or WWIII accompanied by a nuclear holocaust, followed by a dark stone age for the (few) survivors.
How much longer do stocks have to go up and precious metals to stay down before you admit that the current situation will continue forever?
10, 20, 30 years? 100?
We are getting tired of the useless predictions of you and many others, and yes, we have a right to feel angry at being bamboozled, while those who stayed invested in the system prospered.
“…that the current situation will continue forever?” LOL
Hilarious and sad [for anyone who believes that] at the same time.
When the next recession arrives please return and post your current opinion at that time.
Is anyone really so naive to think the Fed et al are now so omnipotent they can prevent recessions? They never did in history, but now they can?
Sure they have more computer technology. And they allow media darling companies to get away with accounting fraud to make their financials and stocks look better. And many don’t care about the PE ratios indicating stocks are the most overvalued in history.
Here is some commentary from someone who knows Wall Street & markets better that anyone who states stocks are going to go up for years & years:
“The stock market has entered the “melt-up” phase that characterizes the final stage of a rampant stock bubble – or any bubble for that matter. The stock market is more overvalued than at any point in history using just about any traditional valuation metric. At this point, the stock market has become a function of money managers chasing price momentum…”
My answer is 6-24 months after the next inverted yield curce.
How can we believe folks who can’t spell?
Why do people leave such angry comments on websites that promote and support precious metals? Are these people trolls who work for the central banks? The c.i.a.? Your anger is misplaced. If you don`t like silver or gold good riddance to you. You are like a man who thinks sex with a whore is great sex.
Gold and silver are the way to go…until we have the crash and burn and than you have also nothing with Gold and Silver because when this things fall and we are in the new times…speculation and markets like we know it are done! This is a simple and 100% sure statement so sell off while in the crash and get with it what you want or need but do not think for one moment that this BS will go on in the future. With all this silver, gold, crypto,… speculation… it has nothing to do in the real life in the new times that lies ahead. People are than sick of it and when the masses wake up (and they will) and there is a couple of % that owns gold & silver…sorry but we lose. Me to because I’m into silver and gold but I know that the most of us think in the old times and are stuck in it, so please unstuck yourself and think a moment what gold and silver has to do when we life in a more conscious world where the ago of a couple of % owns it all and the rest are in the dark. Also they say silver is the way to go because it’s more used in industry. Also 100% BS because than you believe also that the company’s will produce, like they produce now, when this thing crashes. No they will produce less and there will coma a standstill, less jobs,and so on… so silver has lose this potential to be more than gold. Gold is nr. 1 and it will stay that way until the masses are awake and than you need to make sure you have no gold or silver because you can do nothing with… In short there is only one crisis and that is an awareness crisis.
Kz from Belgium